Bitcoin is currently priced at $97,774, down -3.53% in the past 24 hours, while Ethereum trades at $2,730, down -5.19%. The Fear and Greed Index decreased to 54 as the crypto markets face rapid change amid global trade tensions and strategic moves by key industry players and lawmakers. Bitcoin dipped below $100,000 on February 4, 2025 while a Canadian firm, Sol Strategies, bolstered its SOL holdings and legislators advanced crypto bills. Trading volumes of BTC have surged over $4.2B in the past 24 hours and more than 1,200,000 transactions have been recorded across multiple platforms. Key figures such as BTC $98,384, ETH $2,742, and SOL Strategies’ 189,968 total SOL holdings underline the market's volatile behavior and technical dynamism.
What’s Trending in the Crypto Community?
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Crypto Czar David Sacks views NFTs and memecoins as "collectibles" rather than securities or commodities; exploring the feasibility of Bitcoin reserves.
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Crypto Legislation in the U.S. Advances as Stablecoin Bill Pushes Forward on February 4, 2025
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Ethereum Network’s first PoS-based increase in block gas limit.
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Raydium surpassed Uniswap as the largest DEX trading platform last month.
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Vitalik announced Pectra upgrade set for March, with L2 capacity expected to double.
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Neptune Digital Assets is a Canadian-listed blockchain company purchased 1 million DOGE.
Crypto Fear & Greed Index | Source: Alternative.me
Trending Tokens of the Day
Bitcoin has dropped below $100,000 amid escalating US-China Tariff Tensions
China’s US tariffs announcement. Source: mof.gov
Bitcoin has dropped below $100,000 amid escalating US-China tariff tensions. Its price now stands at BTC $98,384 after a decline of approximately 2.3% over the past 12 hours. Concerns mounted after China announced new import tariffs of up to 15% on select US goods effective February 10, 2025. This decision followed President Donald Trump’s executive order on February 1, 2025 which imposed tariffs on goods from China, Canada and Mexico. After a brief recovery that pushed the price up by about 1.5% to $100,231, Bitcoin fell on February 4, 2025 as fears of a correction below $90,000 intensified. Trading volumes soared to nearly $4.2B on major exchanges. Analyst Ryan Lee of Bitget Research commented, "Escalating tensions may weaken traditional markets prompting investors to seek Bitcoin as a hedge against inflation and currency devaluation. However a broader market sell-off driven by economic uncertainty could also trigger short-term corrections potentially pushing Bitcoin below $90,000." These figures reinforce the potential for further volatility in a market already processing over 50,000 institutional and retail investor actions.
Crypto Markets Rebound on February 3, 2025 Due to 30 Day US-Canada-Mexico Tariff Pause
February 4, 2025 XRP Price Movement Source: TradingView
Smoothly transitioning from the pressure on Bitcoin, the overall crypto market rebounded after President Trump paused proposed tariffs on Canada and Mexico. On February 3, 2025, Prime Minister Justin Trudeau announced that the 25% tariffs on Canadian goods would be paused for at least 30 days. In a similar vein, on February 3, 2025, Mexico's tariffs were halted for one month after President Claudia Sheinbaum confirmed that several agreements had been reached. Earlier that same day, Trump’s tariff announcement had led to an estimated $10B liquidation from the markets. As a result, Bitcoin recovered by roughly 3.3% to reach BTC $101,731. Ether which had dropped to ETH $2,451 rebounded by about 17.6% and now trades at ETH $2,880. Data from CoinMarketCap indicated Ether’s average price was ETH $2,742 before the recovery. This rebound is further supported by an improvement in the Fear & Greed Index from 45 to 65 and a surge in trading activity across over 1,200,000 trades in the last 24 hours, showcasing the market's resilience amid global uncertainty. On February 5, 2025, $XRP surges 7% as Trump pauses tariffs on Canada and Mexico.
Read more: Crypto Market Rebounds as Trump Delays Tariffs on Canada and Mexico
Sol Strategies Increases 189,968 SOL Holdings Valued at $44.3M
Source: Sol Strategies
Transitioning to corporate moves, Sol Strategies Inc, a publicly traded Canadian firm focused on the Solana blockchain, significantly expanded its validator operations and SOL holdings. Between January 19, 2025 and January 31, 2025 the company acquired 40,300 SOL for $9,930,000. This strategic purchase boosted its total SOL holdings to 189,968 valued at $44,300,000 USD or $63,700,000 CAD. The move represents an approximate 27% increase from its previous holdings of 149,668 SOL. Additionally the firm increased its SOL delegation from 1,570,000 to 1,770,000 SOL by adding 166,000 SOL from third-party delegations. The deployment of the Firedancer validator client on two of its validators has further enhanced network resilience and transaction efficiency on the Solana blockchain. The company also completed a $2,500,000 private placement through a convertible debenture settled via 6,564 SOL at an average price of $265.65 per SOL. Internal metrics show a 15% improvement in validator performance reinforcing Sol Strategies’ commitment to deepening its technical investments and market position.
Crypto Legislation Advances as Stablecoin Bill Pushes Forward in the U.S.
Bill Hagerty. Source: CoinDesk
In a related development, White House AI and Crypto Czar David Sacks held his first crypto-focused press conference on February 4, 2025. He outlined legislative priorities that include a markets structure bill and a comprehensive stablecoin bill. Senate Banking Committee Chairman Tim Scott from South Carolina stated that both bills are expected to pass in the Senate by the end of President Trump’s first 100 days in office which is less than 90 days from now. The initiative launches as President Donald Trump strives to position America as the world's crypto hub. It represents the latest Republican move to establish clear industry guidelines.
“My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the president’s mission to make America the world capital of crypto,” Hagerty, a Tennessee Republican, said in a statement.
He also noted that a stablecoin bill introduced on February 4, 2025 by Senator Bill Hagerty from Tennessee is likely to advance first. This legislation aims to regulate more than 75% of current crypto market activities and address risks affecting over 3,000 digital asset projects with a combined market capitalization exceeding $2B. These moves are designed to enhance investor protection and stabilize the market for over 50,000 investors nationwide marking a significant regulatory step as the industry evolves.
Read more: Trump Orders Creation of U.S. Sovereign Wealth Fund: Could Bitcoin Play a Role?
Conclusion
In conclusion, the crypto market faces both volatility and opportunity. Bitcoin’s price shifts amid US-China trade tensions and the risk of corrections below $90,000 contrast with a robust recovery following paused tariffs and renewed market confidence. Sol Strategies demonstrates substantial technical investments on the Solana blockchain with a 27% increase in SOL holdings and improved validator performance. Meanwhile lawmakers push ahead with crypto legislation that could regulate more than 75% of market activities and protect over 50,000 investors. With daily trading volumes exceeding $4.2B and over 1,200,000 transactions recorded the crypto industry continues to evolve. Investors and market participants must remain alert and informed as they navigate this rapidly changing environment.
